Today's Bonds Pulse
Bond Yields Surge to 19-Year High, Sparking Stock Market Concerns
The 30‑year Treasury yield climbed to a 19‑year peak while the 10‑year rose from 4.03% to 4.69% before easing to about 4.5%. Goldman Sachs research notes that half‑percentage‑point spikes in yields typically turn short‑term S&P 500 returns negative, heightening correction risk. Inflation is running at 3.8% year‑over‑year, fueling the sell‑off.
Resilience Through Volatility
Franklin Templeton’s "Resilience Through Volatility" briefing underscores the firm’s philosophy of navigating turbulent markets with disciplined risk management and ESG‑aware strategies. The material is framed by extensive legal disclosures, emphasizing that the content is not personalized investment advice and that past performance does not guarantee future results. It highlights FT’s global research capabilities, ESG integration where applicable, and the need for investors to consult their own advisors. The notice also points readers to related webinars on portfolio positioning.
TIPS and High‑Yield Bonds Preserve Purchasing Power
Bond Funds That Have Offered Some Inflation Protection ➡️Returns data indicate that Treasury Inflation-Protected Securities (TIPS) funds and high-yield bond funds offered purchasing power protection during the past decade (including the recent inflationary period), while many investors in short- and...
The Clock Is Running on Two of the Better Short-Duration Trades in the Market
Fixed Income Beacon highlights two short‑duration preferred stocks as attractive yield plays. One issue offers a >10% coupon and is callable in the near term, while a second provides roughly 7.5% yield with a seven‑month call window, both paying qualified‑dividend‑taxed...
Mideast Energy Crisis Pushes Fed Toward Dovish Stance
Being a Fed dove in 2025: Here’s why we should cut Being a Fed dove in 2026: Here’s why we don’t need to hike How the Mideast energy crisis is reshaping the Fed’s debate
RBI Governor Pushes for Deeper Liquidity and Expanded Derivatives Infrastructure
Reserve Bank of India Governor Sanjay Malhotra told the 25th FIMMDA‑PDAI conference that India’s next growth phase hinges on deeper liquidity, broader participation and a stronger derivatives framework. He announced extensions to central clearing, new total‑return swaps on corporate bonds...
R.W. Roge Boosts Vanguard Core‑Plus Bond ETF Stake to $8.3 Million
R.W. Roge & Company increased its position in Vanguard's Core‑Plus Bond ETF (VPLS) by 101,286 shares, an estimated $7.93 million purchase that lifts the holding to $8.32 million, or 3.97% of its reportable assets. The move marks the firm’s first sizable allocation...
EVV: This Fund's Distribution May Continue To Decline Going Forward
The Eaton Vance Limited Duration Income Fund (EVV) offers an 8.97% yield by investing in short‑duration bonds to limit interest‑rate risk. Over the past 13 months the fund posted a 4.17% total return, lagging both peers and inflation. Recent NAV...
April: Rebound in Stocks, Carry in Bonds (E260)
In April, U.S. equities staged a strong rebound after March’s war‑related sell‑off, while investment‑grade bonds delivered a modest positive carry despite higher yields. Emerging‑market debt outperformed other credit segments with a 2.7% return, and commodities, led by energy, rose on...
U.S. Treasury Yields Edge Higher as Markets Rebound Amid Iran Peace Proposal and Trump Tariff Threat
U.S. Treasury yields rose modestly and the yield curve flattened on Friday as equities recovered, driven by Iran's fresh peace proposal and President Trump's threat of 25% tariffs on EU autos. The move reflects investors balancing geopolitical risk with a...
Temperance Street Funding Trust: Presale Report
DBRS Limited (Morningstar DBRS) has assigned a provisional (P) R‑1 high credit rating (sf) to the Series 1 Asset‑Backed Commercial Paper (ABCP) Notes, Class Eagle, issued by Temperance Street Funding Trust. The rating reflects strong credit quality for the newly created ABCP series....
Invesco’s Larosiliere Talks Income, Yield in 2026
At the VettaFi Q2 Market Symposium, Invesco’s Stephanie Larosiliere highlighted a resurgence in fixed‑income ETFs, noting that higher starting yields are opening income opportunities that were unavailable for most of the past decade. She pointed to the Invesco Total Return...
Invesco’s Larosiliere Talks Income, Yield in 2026
At the VettaFi Q2 Market Symposium, Invesco’s head of fixed‑income strategy, Stephanie Larosiliere, highlighted a resurgence in income‑focused bond ETFs as a driver of total return through 2026. She pointed to the Invesco Total Return Bond ETF (GTO), which now...
Banamex Returns to Global Bond Market After Citi Stake Sale
Mexico's Grupo Financiero Banamex has issued global bonds for the first time since Citigroup started offloading its stake in the bank. The move marks a re‑entry into international debt markets, though the size and pricing of the issue were not...
Balancing CEF Trades Amid NY Muni Uncertainty
@cate_long Any thoughts on NY Muni's.......... I follow and trade a bunch of CEF's and have been selling some based on Disco's and near 52 week highs. Same time adding to others (Swapping into) based on cheap 52 wk price comparison...
Ares Management Raises $30 Billion in Q1, Easing Private‑Credit Fears
Ares Management announced a record $30 billion of new capital in the first quarter, the largest fundraising haul for any private‑credit manager this year. The influx, driven by institutional investors, is seen as a vote of confidence that tempers recent negative...
KBRA Releases Research – The Forward Look—European and UK Credit Views: Q2 2026
KBRA’s Q2 2026 European and UK Credit Views report, authored by macro strategist Gordon Kerr, examines how the Iran‑Hormuz conflict and rising commodity prices are reshaping Europe’s credit outlook. The analysis highlights heightened stagflation risks, delayed growth recovery, and tighter...
The Outbreak of Warsh
The episode examines the revival of Gulf public bond issuance after a two‑month war‑induced pause, highlighted by Emirates NBD’s $750 million AT1 bond that priced at 6.25% and attracted a $2 billion order book with roughly 24% international demand. Analysts discuss why...
Moody's Ratings Lowers Missouri's Outlook to Negative
Moody's Ratings kept Missouri’s Aaa issuer rating but shifted its outlook from stable to negative, citing a large structural deficit and declining fund balances. The outlook change impacts roughly $1.8 billion of the state’s outstanding debt and includes a new Aa2...
Treasury Hikes I Bond Rate to 4.26%, Fixed Portion Stays Same. What It Means for Savers
The U.S. Treasury lifted the Series I savings‑bond composite rate to 4.26%, up from 4.03%. The fixed‑rate component, however, remains unchanged at 0.9% for bonds issued through October 2026. I Bonds continue to offer inflation‑linked returns, tax‑free state and local treatment,...
Jacksonville Aviation Authority Bringing $222 Million Next Week
Jacksonville Aviation Authority will price $221.7 million of alternate minimum tax‑eligible aviation revenue bonds next week, marking the airport's first publicly available bond issuance in two decades. The bonds are led by J.P. Morgan and co‑managed by BofA Securities, Ramirez & Co., and RBC...
Prioritize Time Horizon Over Rate Forecasts in Bonds
When It Comes To Bonds, Don't Be A Hero: Why taking a strategic approach to bond investments based on an investor's time horizon and cash needs could be superior to a tactical approach focused on anticipating future interest rate moves....
Modernize Fixed Income Portfolios With Income Alternatives
Advisors are expanding traditional fixed‑income portfolios by adding specialized income alternatives, with over 80% planning satellite positions in Q2, according to VettaFi data. Options‑based ETFs are being used by 35.8% of advisors to lower volatility and lift yields, while active...
Buy Preferred CEFs at 5%+ Discount for Strong Yield
Macro: Preferreds yield high amid income hunt. Drivers: CEF discounts, leverage, tax treatment. Risks: rate sensitivity, leverage, term‑fund liquidation. Trade: buy preferred CEFs trading ≥5% discount for monthly yield. — Viktor Kopylov, PhD, CFA More insights: t.me/si14Kopylov
FSK Trades at Half Book Amid Massive Losses
The $FSK setup: > Stock at $10.51 vs. $20.89 reported NAV > $517M in realized losses over five quarters > PIK at 34% of NII > 21 names on non-accrual > Bonds got downgraded to junk Stock trades at ~0.54x of book while...
Morningstar DBRS Confirms Fortis Inc.'s Credit Ratings at A (Low) With Stable Trends
Morningstar DBRS confirmed Fortis Inc.'s issuer and unsecured debenture rating at A (low) with a stable outlook, alongside preferred shares at Pfd‑2 (low) and subordinated notes at BBB. The agency highlighted a supportive regulatory environment across Fortis' North American footprint,...
Lender Concessions Halve as Redemptions Surge
Direct lender concessions just collapsed. Q4 2025: 67% of lenders made borrower-friendly concessions to win deals. Q1 2026: 31%. The discipline showed up the moment the redemptions started. Funny timing. Source: William Blair
Bondholders' Holdout Triggers Spirit Airlines' Liquidation
Spirit Airlines is shutting down. The bondholders had two choices: 1. Take 10% of the equity in a Trump-backed reorg. 2. Hold out for more and risk liquidation. They held out. The cash ran out. Liquidation it is.
Amid TIPS Disappointment, This ETF May Be Bond Investors’ Best Friend
Advisors face a fixed‑income dilemma as Treasury Inflation‑Protected Securities (TIPS) underperformed despite rising inflation, while Treasury yields climbed in Q1. The WisdomTree Floating Rate Treasury Fund (USFR) – a $17 billion ETF with a 12‑year history – has outperformed the Bloomberg...
April Muni Issuance Falls, but Remains Above 10-Year Average
April municipal bond issuance slipped 7.8% year‑over‑year to $47.607 bn across 797 issues, yet it remains well above the 10‑year average of $37.323 bn. The decline follows a strong 2025 year, with April 2025 topping $50 bn for only the second time. Tax‑exempt...
Muni Bond Investors: Let’s Talk TAXF
The American Century Diversified Municipal Bond ETF (TAXF) manages $616.6 million and offers active management of intermediate‑term municipal bonds. With a 6.2‑year option‑adjusted duration and 714 holdings, TAXF aims to outperform the S&P National AMT‑Free Municipal Bond Index. Analysts note tightening...
Powell Holds Rates Steady as Iran War Fuels Uncertainty, Markets React Lightly
In his last press conference as Fed Chair, Jerome Powell left the benchmark rate unchanged and warned that the Iran war adds to economic uncertainty. Investors took the news in stride, with the S&P 500 edging up 0.04% and bond...
Freddie Mac Says 30‑yr Mortgage Rate Climbs to 6.30% as Middle East Tensions Lift Bond Yields
Freddie Mac announced the national average 30‑year fixed mortgage rate rose 7 basis points to 6.30% and the 15‑year rate to 5.64% amid heightened Middle‑East conflict. The jump reflects pressure on Treasury yields, underscoring the bond market’s sensitivity to geopolitical...
MSRB Approves Amendments to Dealer Supervision Rule
The Municipal Securities Rulemaking Board approved amendments to Rule G‑27, extending the annual business‑day exclusion for non‑primary residences from 30 to 60 days and clarifying the definition of “structuring” for public offerings and private placements. It also issued a request for...
Credit Managers Warn on Iran as Defaults Rise, Spreads Poised to Widen
Credit managers surveyed by the International Association of Credit Portfolio Managers warn that defaults are set to rise sharply, while credit spreads are expected to widen only modestly. The Credit Spread Index fell to -46.2, its lowest level since March...
UST Auctions Trigger Record MOVE Spike and VIX Surge
The Great MOVE UST Volatility Crash of April 2026: Blue = MOVE; red = VIX; green = Oil Mar 24, 25, 26 = 3 straight ugly UST auctions Mar 26 = MOVE hits 115 (near dysfunctional levels) Mar 27 = MOVE & VIX peak...
BGT: The 13% Dividend Yield Is Not Supported By Earnings
BlackRock Floating Rate Income Trust (BGT) continues to trade at a steep discount as its 13.1% dividend yield is not backed by earnings. Distributions for the 2025 period are nearly twice the fund’s net investment income, highlighting a payout gap....
DOT Officials Pushing for More Private Activity Bonds
The U.S. Department of Transportation is urging Congress to lift the $30 billion cap on private‑activity bonds (PABs) and to broaden the Transportation Infrastructure Finance and Innovation Act (TIFIA) to include more airport projects. DOT officials say the current PAB reservoir...
Sovereign Bonds May Get SFDR Reprieve From EU Member States
The EU Council is working toward a draft compromise this month that could let sovereign bonds issued by transitioning economies qualify for Article 7 Sustainable Finance Disclosure Regulation (SFDR) funds. Member states are debating whether to extend the green‑finance label to...
Bank of England Holds Rate at 3.75% Amid Energy Shock Risks
The Bank of England’s Monetary Policy Committee voted 8‑1 to leave the bank rate unchanged at 3.75% on April 30, citing the risk of material second‑round effects from an energy price shock tied to the Middle East war. The decision...
Treasury Yields Rise as Valero Issues $850M 10‑Year Notes and Adamas Launches $90M Senior Bonds
Valero Energy Corp sold $850 million of 10‑year notes at a 5.15% coupon and Adamas Trust issued $90 million of senior unsecured notes due 2031 as Treasury yields rose. The issuances came as Tradeweb reported over‑50% market share in institutional U.S. Treasuries...
Kashkari Urges Fed to Keep Policy Flexible Amid Iran War
Minneapolis Fed President Neel Kashkari: "Why I dissented" He says the policy statement should signal the next rate move could be a cut or a hike given the broader range of outcomes from the Iran war. He lays out two modalities: a...
Aggressive 1x2 Put Spread Targets 5.75% Yield
Added a pretty big 1x2 put spread on ZB today. 84 days Max payout at 30 year yield of 5.20. B/e of 5.6 yield and will stop at 5.75 yield. Overheat mostly covered.
School Fiscal Challenges Are Pressuring Bond Ratings
Credit rating agencies are flagging mounting fiscal pressure on U.S. K‑12 districts and colleges as enrollment declines, rising salary and benefit costs, and limited revenue flexibility erode credit quality. Fitch reported that K‑12 districts accounted for 70% of its downgrades...
Monthly Chart Shows TLT Outperforming Value Pitches
a few monthly charts i thought i'd share... #monthlycharts although there have been many pitching U.S. treasury (bonds) for value, the chart speaks... $TLT https://t.co/3VMEeufVcn
Foreign Central Banks Stopped US Treasury Purchases; Domestic Funding Rises
Multiple things are simultaneously true: 1) Foreign public sector (central banks) are not buying US treasuries for over a decade, led by China. 2) Foreign private sector is still buying treasuries. 3) Foreign buying is not keeping up with issuance, so more is...
Debt Load Triples, Threatening Medallia’s AI Rebuild
Rising rates and PIK nearly doubled Medallia’s interest payments (see table below) Then taking on even more debt for acquisitions made it nearly 3x. Hard to rebuild for AI with that debt requirements… https://t.co/86MT1yj7Yo
Takaichi's Low‑Rate Push Risks JGBs, Only Hikes Cure
Takaichi wants to intervene in markets to mitigate inflation, but keep rates low to support her agenda. JGBs will suffer until she realizes hiking rates is the only way to durably keep inflation in check and support JPY. Bank lending has...
Meta's $96B Bond Demand Amid 8.6% Stock Drop
fun when bond and stock investors say different things Meta fielded $96 billion in orders for its $25 billion bond sale yesterday as shares sold off by 8.6% post-earnings https://t.co/gYzRG1K7Mr
Explore 19th‑Century Railway Bond Boom in New Podcast
If you’re interested in a sneak preview of my upcoming book A FABULOUS DEBT, we recorded a whole podcast on one of the chapters — the stupendously large 19th railway bond boom, the Panic of 1873 and the fall of...
Derivatives Trim BoC Rate Outlook by 22bps, Hikes Discounted
5 G10 central banks met this week and they all delivered to varying extents hawkish holds. The derivatives market adjusted expectations for this year’s course by 22 bp for the Bank of Canada. Two hikes are now...